    [Weekly Compilation of Presidential Documents Volume 44, Number 27 (Monday, July 14, 2008)]
    [Pages 949-960]
    [Online from the Government Publishing Office, www.gpo.gov]

    <R04>
    Interview With Foreign Print Journalists

    July 2, 2008

        The President.  So here's the thing, I'm going to have a few
    comments, and then got time for one question apiece, so calibrate your
    questions. You can do like our press, ask three questions in one
    question.
        Anyway, what are the rules for the American press corps--French and
    American press corps?
        Press Secretary Dana Perino. It's embargoed until they have a chance
    to use it themselves.
        The President. I'm talking about these people.
        Ms. Perino. Yes, they hold it until after it's already published.
        The President. I got you. That's presuming they read Japanese
    papers.
        Ms. Perino. Toby [Tabassum Zakaria, Reuters] does.
        The President. Okay.
        First of all, I'm looking forward to this. As you know, it's my last
    G-8. These are useful, important meetings, because it's a chance to
    forge common policy, but it's also a chance to have a lot of important
    bilaterals. And the first bilateral I have is with the Prime Minister.
    And it's very important for me to make it clear to him and the Japanese
    people that I value the bilateral relationship with Japan.
        It has been, and will be, the cornerstone of our policy. And my view
    is our relations have been very good during my Presidency. As you know,
    I had a close relationship with Prime Minister Koizumi. After all--but
    he wasn't the first Prime Minister I dealt with. The first Prime
    Minister I dealt with wasn't around very much--he was--he spent more
    time with my predecessor, obviously--and then Koizumi and then,
    obviously, Abe and the current Prime Minister.
        I worked hard to have a good personal relationship with all the
    leaders so that we can discuss common problems and common issues. And
    we've worked through a lot of problems in the past, but more
    importantly, we've got a strategic relationship that is solid and well-
    founded. And that's very important for stability and peace in Asia.
        And so--and then, of course, we'll have the meetings. And there will
    be a variety of topics to discuss. I'm confident people will be
    concerned about food prices and energy prices. We'll discuss those. To
    the extent that we can develop a common strategy to deal with them, it
    will make a lot of sense. I think the world will watch carefully and see
    what signals come out of the meetings. My own view is, is that here in
    the United States we can do more to find oil. Like Japan, however, we're
    dependent upon foreign sources of oil, which means we've got to
    transition to a different era.
        One of the interesting things that's taking place in Japan--I tell
    this to a lot of my friends here--I happen to believe battery
    technologies are coming soon. And the Japanese are, of course, in the
    lead when it comes to new technologies relative to automobiles, such as
    battery technologies. And some day relatively soon, I'm confident that
    people will be driving the first 40 miles on electricity, and the cars
    won't look like tiny marbles or golf carts; they'll actually be regular-
    sized automobiles.
        And so the question is, how do we manage the transition to a new
    era? Eventually, we'll be driving hydrogen automobiles. And I know the
    Japanese private sector is working very hard on hydrogen technology, as
    are we. Here at home, as you know, we're diversifying the fuel by the
    use of ethanol. And I've always felt it was good to have American
    farmers growing fuel rather than trying to purchase crude oil from parts
    of the world that, frankly, are either unstable or don't like us.
        In terms of food prices, a lot of the food prices are being driven
    by energy costs. But

    [[Page 950]]

    we can do a better job of selling seed and fertilizer or giving seed and
    fertilizer to help others grow crops. I mean, it is--parts of the world
    should become sufficient in food, and they're not.
        One of the interesting debates will be, of course, the use of
    bioengineered food, genetically modified crops. And it's--these
    genetically modified crops can grow in fairly harsh weather conditions,
    where there's a lack of water, and yet some countries are fearful to use
    it because they won't have market access for their crops when they
    export them.
        Another great opportunity would be, of course, dealing with the
    environment. I know this is important for the Prime Minister, and it's
    important for all nations there. It turns out that energy independence
    and climate change can go hand in hand. In other words, the technologies
    that free us from dependence on hydrocarbons will be the very
    technologies that enable us to improve the environment. The question is,
    how best to expedite new technologies to the market, and frankly, get it
    in the hands of countries that are going to need these technologies,
    such as your cross-straits neighbor, China.
        My own view is that there will never be an effective agreement
    unless China and India are at the table. And I say ``effective,'' I mean
    a results-oriented agreement where, in fact, we actually accomplish an
    objective, which is reducing greenhouse gases. And so we'll work to set
    the conditions so that people understand that in order to be effective,
    all of us who are creating greenhouse gases must agree to long-term
    goals and develop effective interim plans.
        On my mind, of course, will be human rights and human dignity. And
    that comes particularly in the form of helping people deal with malaria
    and HIV/AIDS. I believe in the admonition, to whom much is given, much
    is required. Our nations have been given a lot, and we're comfortable
    nations. And we got to remember that there is suffering in the world,
    and that when we speak, when we make pledges, we got to mean what we
    say. And the last G-8, people came to the table and said, ``Okay, we
    hear you; now we'll all pledge.'' And the question is, have people
    written checks? And I will gently remind people, to the extent I can be
    gentle, that it's important for people, when they hear us talk, to know
    that there will be results.
        And I'll talk about our HIV/AIDS initiative in Africa, and how it's
    been effective, and the malaria initiative. I'll use examples such as
    Zanzibar, a part of Tanzania where the infection rate for young babies
    was 20 percent; it's down to 1 percent because of a simple plan--and
    that these nations can help.
        And so we've got a--by the way, this all is part of this war on
    terror. I do want to thank the Japanese Government and Japanese people
    for clearly understanding the stakes. But we face an enemy that can only
    recruit when they find hopeless people. And there's nothing more
    hopeless than a mother losing her baby because of a mosquito bite. And
    so not only is it in our moral interest to help people, it's also in our
    national security interest to help people.
        And so that's kind of how I see it. Now, who wants to start?

    Trade

        Q. Sir, since I went to high school in Texas----
        The President. Where did you go?
        Q. Edinburg, sir.
        The President. Did you? Edinburg High School?
        Q. Yes, class of '74.
        The President. You've got to be kidding me. [Laughter] Edinburg High
    School. Isn't that interesting? Nobody knows where Edinburg is except
    for me and you. [Laughter] It happens to be on the Mexican border. It
    is--what year were you there?
        Q. In '74.
        The President. Oh, man. You been down there since?
        Q. Yes, several times.
        The President. Amazing, isn't it, how it's changed?
        Q. Yes, it has.
        The President. The benefits of free trade. People need to--if you
    could have seen Edinburg in '74 and Edinburg in 2004 and now 2008, you'd
    be amazed at the changes as a result of free and fair trade between the
    United States and Mexico. And therefore, one other point will be, of
    course, complete Doha successfully.

    [[Page 951]]

        Thank you for reminding me of the importance of free trade.
    [Laughter]

    Abduction of Japanese Citizens/Six-Party Talks

        Q. Mr. President, thank you very much for giving us this opportunity
    to ask questions, sir. And first, let me start with a very Japan-
    specific question about North Korea and abductees issue.
        Sir, at the press conference on June 26, you made a--said that the
    United States would not abandon its strong ally when it comes to
    resolving this abductee issue. But in spite of this very strong
    statement that you made, there are still some doubts and concerns in
    Japan, especially among the families of abductees, that the United
    States might try to resolve this nuclear issue at the expense of the
    abductee issue.
        And, Mrs. Yokota, who you met in your Oval Office 2 years ago,
    reportedly said that she was irritated because she felt that Japan was
    ignored. What exactly do you plan to do to assure Japanese Government
    and the people that the United States will not abandon Japan in the
    process of rescinding North Korea's designation of a state sponsor of
    terror? And what will the United States do to help bring progress to
    this issue within 45 days of this delisting process, sir?
        The President. Yes. Well, first of all, I can understand the mom's
    concerns. I got to see firsthand in the Oval Office how--her sense of
    anguish and hurt that her sweet daughter had been abducted. So I
    understand the emotions of the issue. As a matter of fact, I invited her
    to come because I wanted to--I wanted her and others to see firsthand my
    personal concern. The truth of the matter is, if I wasn't concerned
    about the issue and didn't think it was a priority, I wouldn't have
    invited her to the Oval Office.
        Secondly, I believe that the six-party talks is the best way to
    effect change in the North Korean regime--positive change. One such
    change, of course, is to head toward a common objective, which is a
    nuclear free--a nuclear weapons-free Korean Peninsula, which is in our
    interest, and it's in Japanese interests.
        Secondly, there are other issues, of course, to be dealt with in
    this framework. And one such issue is the abductee issue. The question
    is, can Japan solve this issue alone better, or does it make sense to
    have the United States and other countries expressing the same concerns?
    I happen to believe that it is in your country's interest to have the
    United States and other countries helping you on this issue. And
    therefore, I view the six-party talks as a framework to convince the
    North Korean Government to deal with these serious issues.
        And, you know, people--I can understand people saying, well, I guess
    this is the beginning of the end of U.S. concern. But I will say it
    again, like I have said it time and time again, this is the beginning of
    our concern and it's a framework to help solve the concerns of the
    parents, the people of Japan, and the Japanese Government.
        In terms of the recent declaration, this was agreed to by the
    Japanese Government. This was an understanding that this is how we're
    going to move the process forward. But this is only one step. I think
    some of your listeners or readers probably think that, well, this is the
    end of the process. No, this is the beginning of the process. And
    there's a lot more work to be done. And our policy is action for action.
    And what's changed is, it used to be, okay, we'll give the North Koreans
    a concession and hope they respond. Now it's, when they act, we respond.
    And part of the agenda is the abductee issue.
        Thank you, sir.
        Mr. Sato.

    Six-Party Talks/Japan-U.S. Relations

        Q. Yes.
        The President. They call you Mr. Sato?
        Q. Hi. Yes. Thank you very much, Mr. President. I'd like to just
    follow up on the North Korea issue. There is in Japan--there is concern
    in Japan that the golden era of the U.S.-Japan alliance has passed, the
    historical--[inaudible]--of alliance is now degrading. So how do you
    think that, in this context, the removal of North Korea from the list
    affects the U.S.-Japan alliance?
        The President. It's interesting. Somebody told me that beginning to
    creep into the dialog there is--the six-party talks really is--you know,
    will undermine the bilateral relations between Japan and the United
    States. I fully reject that. It's like saying, okay, we're all part

    [[Page 952]]

    of the United Nations, therefore, bilateral relations don't matter.
    Multilateral forums to address an issue strengthens relations; they
    don't weaken relations.
        And the fundamental question is, how do you solve the problem of
    North Korea? That's the question. That's what the six-party talks were
    aimed to address. The history of this issue was, at one point in time,
    it was really only the United States that was dealing with the issue;
    others were kind of there, but they weren't that--they basically said,
    here, go solve it.
        And it's an effective way to deal with a problem way diplomatically.
    In order to solve a problem diplomatically, there has to be other voices
    who say, here's what we expect, and, if not, here are the consequences.
    And that's why it was so important to convince the Chinese, for example,
    to become a party to the six-party talks.
        In the meantime, however, we have been working very closely with
    Japan on a variety of issues. You notice, we're no longer talking about
    basing issues. Why? Because our bilateral relations were such that we're
    able to deal with them. We were able to work together in Afghanistan and
    Iraq. We were able to work together on humanitarian issues in places
    like Afghanistan. In other words, our bilateral relations have thrived
    during this period when the six-party talks were constructed.
        The only thing I can do is just tell people how I view it, when I go
    to Japan or through objective agents such as yourself. And it is: Our
    relations have been important; they are important, and they will be
    important. And as I said in my opening statement, this really is a
    cornerstone to our policies in Northeast Asia.
        Hiro.

    North Korea

        Q. Thank you, President. Again, on North Korea----
        The President. Sure, yes. Is this going to be six North Korea
    questions? [Laughter] I can handle all six, trust me.
        Q. Well, last week, you said you don't have any--you have no
    illusions about the North Korean regime, Kim Jong Il. So the question
    might be hypothetical, but if North Korea----
        The President. No, it is hypothetical, I can tell you--when you
    start with an ``if.'' [Laughter] You can try a hypothetical. [Laughter]
        Q. In the case North Korea does not fulfill its obligation, such as
    disclosing a number of the weapons that they have or nondisclosing of
    the enrichment----
        The President. Or dealing fairly on abductees.
        Q. ----yes, abductees or proliferation issue, activities to Syria,
    what kind of message do you think you'd----
        The President. Well, we'll of course work with our partners. Now,
    for example, these won't be unilateral sanctions. These will be
    multiparty sanctions. But first of all, this regime is highly
    sanctioned. They have been isolated. And if they choose not to move
    forward on an agreed-upon way forward--action for action--there will be
    further isolation and further deprivation for the people of North Korea.
        The regime had made a conscious decision to at least make a
    declaration within the six-party talks to move forward. I would only
    surmise that perhaps the leader of North Korea is tired of being
    isolated in the world and would try to advance his country in a way that
    makes it easier for the people to have a better life.
        And therefore, if you read the statements that started the six-
    party--that confirm the six-party talks, about what the pledges are,
    there are very concrete--it's a concrete action plan. But keep in mind,
    at this point in time, this is still a regime that is highly sanctioned.
    So step one is, if he chooses not to move forward, then the status quo
    is for certain, and he'll remain highly sanctioned. And then, of course,
    there will be great disappointment with the other parties involved in
    the six-party talks.
        Expectations are that he will move forward, action for action. But
    if he doesn't, we now have partners at the table who will be wondering
    how best to send yet another message to him. And the good news: It won't
    be just Japan and the United States, there will be other countries
    there. This is how multilateral diplomacy works.

    [[Page 953]]

        And I repeat to you, the six-party talks have been aimed to set a
    framework in place that will serve as an inducement to go forward, but
    also that can be consequential. And we, of course, will consult with our
    partners to deal about--I mean, step one is no change in the current
    status, which means highly sanctioned--probably the most sanctioned
    nation in the world. And step two is, of course, we'll consult and
    figure out a way forward.
        My hope is, is that the North Koreans continue to move forward. And
    you mentioned what we expect. We expect there to be full declaration of
    manufactured plutonium; we expect there to be a full disclosure of any
    enrichment activities and proliferation activities; and we expect the
    abductee issue to be solved.
        Kenji.

    Environment/Technology/Energy

        Q. Thank you, Mr. President. I'd like to ask a climate change issue.
        The President. Climate change, yes.
        Q. In the upcoming summit, Prime Minister Fukuda hopes to set a
    long-term goal for curbing greenhouse gas emission, and I think you
    share the idea. What goals do you have going into the summit, and do you
    expect to strike an agreement on that?
        The President. I'm hopeful we can strike an agreement. But I caution
    everybody that such an agreement must have all of us who create
    greenhouse gases, not just those of us around the table at the G-8. And
    that's why we worked with the Prime Minister to have this major
    economies meeting; it was to strengthen the G-8, is to make it relevant.
        You know, it's an interesting notion that--I said today in my press
    availability in the Rose Garden--I don't know if you were there or not--
    you know, I wonder whether or not some of these nations who are creating
    greenhouse gases, but considered still developing nations, are used to
    the period of Kyoto, when they weren't held to account about what they
    were producing. I wonder if that's their mindset. Because if it is,
    it'll make any international agreement ineffective if they're not a part
    to it, because, you know, it is estimated that--well, China is creating
    a lot of greenhouse gases and will continue to do so. And therefore,
    Japan and the United States can maybe make decisions that affect our own
    production, but it will be ineffective at solving the problem unless
    China is with us.
        And so my hope there is to move the process along so that we, at a
    very minimum, send a clear message to developing countries that are
    producing greenhouse gases that we expect you to be a part of an
    agreement. And step one is a long-term goal. In other words, if you can
    get nations to commit to a goal, you've got them committed to a process.
    If, however, the process doesn't matter whether you're a part or not, or
    you may be a part at some point in time, in my mind that won't produce
    the results that are necessary to deal with the global climate change
    issue. And so we'll see how that goes. We're working it very hard, as is
    the Prime Minister and other nations.
        The other thing we can do is we can talk about some just practical
    things we can do, such as insisting that we reduce tariffs and trade
    barriers on pollution equipment. It makes no sense to make such
    equipment prohibitively expensive when it is--when there are some basic
    technologies that could move and can help. And I will be talking about
    technologies there as well. And I told you about some of the
    technologies dealing with automobiles and, you know, the interesting
    thing is, is that the world is now beginning to waken up to the beauty
    of nuclear power.
        And, I mean, if one is really concerned about global warming and
    greenhouse gases, they ought to be carrying signs insisting upon the
    development of nuclear powerplants. This is renewable energy with zero
    greenhouse gas emissions. And yet the world--parts of the world are very
    reluctant about--even in our country, it's very difficult to build a
    plant. We've been able to get some regulatory relief through government
    action. I think four new plants have been permitted, or four expansions
    have been permitted. But we ought to be--about 25 percent of our
    electricity comes from nuclear power, and it ought to be a lot higher.
        And you know, one of the things that interesting is, Japan and the
    United States are working on technologies to deal with the waste. And
    that will--if that--when that

    [[Page 954]]

    technology comes to fruition, it will ease some people's concerns. There
    will be some who just simply will never buy into nuclear power. I fully
    understand that. But this will be a great opportunity to discuss about
    other things we can do while we're trying to work--you know, by the way,
    everything we're going to do is meant to strengthen the United Nations
    process and not weaken it.
        And so, anyway, that's kind of what's on my mind going into the
    meetings.
        Q. Thank you very much.
        The President. Oishi.

    U.S. Monetary Policy

        Q. Hello.
        The President. Yes.
        Q. Nikkei is economic newspaper, so let's talk about economy.
        The President. You're an economic newspaper?
        Q. Yes.
        The President. You're the Wall Street Journal. [Laughter]
        Q. More famous than the Wall Street Journal.
        The President. More famous. [Laughter] Well, that's good.
        Q. So, Mr. President, I know your strong U.S. dollar policy----
        The President. Yes, that's true.
        Q. ----but do you know how to make it stronger? Or do you expect the
    possibility of the U.S. intervention in the fiscal--financial market?
        The President. We believe that the relative worth of economies
    should set respective currencies. And therefore, the best way to
    reenforce our strong dollar policy is to keep taxes low in the United
    States, ease regulatory burdens, become less dependent on foreign
    sources of oil, and make it clear that we're for free and fair trade.
    That not only means the trading of goods and services but also the
    investment, that the United States is open to investment. And to me,
    those are the best ways to deal with the fundamental aspects of an
    economy, that assures the world that the United States will be a
    vibrant, strong economy and that eventually will be reflected in our
    currency.
        Would you like another economic question?
        Q. Well, does Europe share the same view?
        The President. Does who?
        Q. Does Europe----
        The President. Share the same view of the U.S. dollar? I think they
    want there to be--it's an interesting question. I heard concern about
    our dollar, and I believe they support the U.S. strong dollar policy.
        Yes, sir.

    North Korea/Iraq/Iran

        Q. Thank you, Mr. President. My question is on North Korea and Iran.
        The President. North Korea.
        Q. North Korea and Iran.
        The President. Okay, good.
        Q. So you have looked at multilateral diplomacy in dealing with
    North Korea and made a decision to move it from the list of state
    sponsors of terrorism in return for actually a far from perfect
    declaration on its nuclear activities. Some people say that this is kind
    of appeasement or a double standard compared to the way you dealt with
    Iraq.
        So do you think the way you dealt with Iraq--with North Korea,
    namely, action for action principle, through multilateral diplomacy,
    rather than military option, would be an effective and realistic motive
    for preventing an Iran with nuclear weapons? And if so, what exact
    action do you want from Iran? And what action is the United States ready
    to offer to Iran?
        The President. Yes, sure, thank you. First of all, if I might, I'd
    like to reject some of the premises in your question. One, you said
    that--incomplete declaration. Well, we're in the process of determining
    whether or not North Korea did make an incomplete declaration. And if
    they did, they will remain the most highly sanctioned nation.
        One thing is for certain is they did collapse their cooling tower on
    the plant that had been used to manufacture plutonium. I mean, that is a
    complete declaration, at least of that aspect of what they said--when
    they said they would dismantle--or disable and then dismantle. And so
    we've got--you know, there's a process. Things are going on. I guess we
    live in a world where everything is supposed to be instant, but I repeat
    to you, this

    [[Page 955]]

    is a first step of a multiple step process, just so everybody
    understands.
        Secondly, we conducted multilateral diplomacy in Iraq--oh, yes--1441
    at the United Nations Security Council--the world came together and
    said, disclose, disarm, or face serious consequences, in a unanimous
    vote. Now my speech to the United Nations took place in September, early
    September of 2002. I don't know if you remember the debate during that
    summer. It was, ``Will Bush go to the U.N. Security Council, or will
    this be a unilateral move without it?''--going to this world body. I
    think some might have been old enough to have covered that story here.
        And the answer was, I did go to the U.N. Security Council. We did
    conduct multilateral diplomacy, and the world was supportive of saying
    to Saddam Hussein, disclose, disarm, or face serious--and he made the
    choice. He was the one who got to make the choice because he--you know,
    he defied the world.
        And so I have always said that diplomacy has got to be the first
    choice of solving any of these problems. But military options remain on
    the table, and they remain on the table for these three issues you
    discussed. I happen to believe multilateral diplomacy is the most
    effective way to solve some of these very difficult problems, because
    there needs to be more than one voice in saying the same thing. Because,
    in the past, if you're there alone and you say something and then the
    leader basically rattles people's cages or makes them nervous, guess who
    the world rushes to? Not to the person rattling the cage; it rushes to,
    in this case, the United States: ``Fix it; get him what he wants.'' And
    it didn't solve the problem.
        Now I understand sometimes people love process so everybody feels
    good, you know. But that's not what I--this administration is trying to
    solve problems. And the best way to solve the problem in North Korea was
    to have others at the table along with us--and same with the Iranians.
    Now this has been difficult to get there to be a focused message because
    some are worried about market share. You know, the message to the
    Iranians is: Verifiably suspend your enrichment program, and there's a
    better way forward.
        And by the way, in 2003, it looked like we were in the process of
    convincing the Iranians to verifiably suspend their enrichment program.
    And the United States was working with our partners in Europe, sending a
    message that you can end your isolation. And then Ahmadi-nejad came
    along and changed the tone and changed the--evidently changed the policy
    of the government. And so now, Iran is much more confrontational. But
    our message hasn't changed: Verifiably suspend your enrichment program,
    and there is a better way forward.
        So there are carrots and there are sticks. We're working hard to
    make sure that the sticks mean something. And I've been pleased by the
    U.N. Security Council resolutions that have been issued by our friends
    in the United Nations Security Council in a way that says to the
    Iranians, we're serious about your change of policy. The choice is
    theirs. We've made our choice.
        Now, one thing that's interesting--I think I'll--you find this
    interesting, at least you'll play like it's interesting--is this: Should
    the Iranian regime--so I'm the guy who just talked about nuclear power,
    right? Should the Iranian regime--do they have the sovereign right to
    have civilian nuclear power? So, like, if I were you, that's what I'd
    ask me. And the answer is, yes, they do. And I have said so publicly
    time and time again. But they don't have the right, as far as the U.N.
    Security Council, for example, goes, to enrich, because they haven't
    told the truth about their program; therefore, they can't be trusted
    with enrichment. After all, enriching uranium is a step toward having a
    nuclear weapon.
        So we worked with the Russians, Vladimir Putin and I worked on--and
    he took the lead on this issue, for which I am grateful. So he goes to
    the Iranians and says, we'll provide enriched uranium for you. You have
    a sovereign right--Bush has said you have a sovereign right to have
    nuclear power. But because you have defied the IAEA in the past, we'll
    provide enriched uranium for you, and we'll collect the enriched
    uranium; therefore, you don't need to enrich. And if you insist on
    enriching, it must mean you want a weapon.

    [[Page 956]]

        And so multilateral forums enable people to come up with those kinds
    of tactics that are effective. And so, you bet, the multilateral forum
    is the best way to solve this peacefully.
        Okay, guys. I hope you've enjoyed it as much as--oh, you want to ask
    more questions? I'm sure you do. Well, that's generally what happens
    with one of these things.
        Okay, you better hurry----
        Ms. Perino. Lightning round.
        The President. Lightning. Quickly.

    Japan's Antiterrorism Law/Japan's Role in Afghanistan

        Q. Quick, move to Afghanistan. Japan has been providing the
    support--support to multilateral force, including United States, in
    Indian Ocean, to support Afghanistan. But the law that enables maritime
    Japanese force to do that will expire in July.
        The President. Next July.
        Q. Next July.
        The President. A year from now.
        Q. Yes, next July.
        The President. Right. And so----
        Q. And U.S. has been----
        The President. We were very pleased that they renewed the law.
        Q. And Secretary Gates has been asking to either extend or even
    enhance, like sending helicopters, CH-47s to Afghanistan. And I was
    wondering whether you can explain to the Japanese why such upgraded
    participation in the war in Afghanistan serves the interests of Japan,
    apart from simply meeting the expectation of the United States?
        The President. Because when Al Qaida--forces like Al Qaida have a
    safe haven to attack friends and allies, or Japan itself, it's a danger
    to peace. And as for the Japanese contribution, we are very grateful for
    what we have, and we appreciate the government getting the current
    extension through the Parliament. And we, of course, will work with our
    allies to determine whether or not an enhanced presence could be useful.
    And if the government can support that, fine. But I just want you to
    know how grateful I am for the contribution, as well as the humanitarian
    contributions.
        It also ought to make the Japanese people feel good to know that
    they're helping young girls go to school, or they're helping people get
    their food to market. Does it matter? Yes, it matters, if you care about
    the human condition. So the contribution has been great.
        Sato. Got another question? If not, I will applaud you.

    Japan-U.S. Relations/Nippon Professional Baseball

        Q. Yes, I have a very personal question, so----
        The President. A very what kind?
        Q. On the history, for----
        The President. Personal, yes.
        Q. During your Presidency, the Japan-U.S. relationship was very
    strong. But there are still unresolved issues on--regarding Pearl Harbor
    and Hiroshima. And some historians propose that the Prime Minister
    should visit Pearl Harbor and U.S. President should visit Hiroshima.
        The President. That's interesting.
        Q. What do you think about this?
        The President. My attitude is, is that I--look, this was a painful
    period in our respective histories. After all, my father, for example,
    was a young Navy fighter pilot at war with Japan. But my experience has
    been very different, because one of my best friends was Prime Minister
    Koizumi. Isn't that interesting? And one reason why is because we put
    the past behind us and focused on the future.
        And symbolic gestures like that may make sense. I don't know. I
    haven't really thought about it. It's an interesting idea. You're the
    first person that's ever brought it up to me, I want you to know. But
    whoever the next President is must, one, understand the importance of
    the relationship, and two, be thinking about the future, because we
    share values; we've got a lot of work to do. We've had interesting
    economic relationships throughout our history. As you know, I believe in
    open markets, free and fair trader. That--to me, if I were somebody
    living in Japan, I'd say, well, there's a fellow who has put the past
    behind him and is focusing on what's in the best interests of both
    countries.
        So it's an interesting suggestion. This will be--it won't work for
    me; this is my last trip to Japan as President. Supposed to never say
    never, but I--let me just--I predict this is

    [[Page 957]]

    my last trip to Japan. And I'm not saying I'm happy about it.
        So--is anybody going to ask me about Bobby Valentine? [Laughter] You
    don't even know who Bobby Valentine is. He was the old coach of the
    Rangers who's a manager of one of the Japanese baseball teams, and he's
    done very well in Japan. People like Bobby, don't they?
        Q. Yes.
        The President. Yes, he's--last time I was in Japan, Bobby was there
    at the airport with Mr. Oh. [Laughter]
        Q. Oh. [Laughter]
        The President. The Babe Ruth of Japanese baseball.
        Q. Oh, yes, that's right.
        The President. Okay? Got anything, Hiroki?

    China/Japan

        Q. Yes, please.
        The President. You're the guy who thought of it.
        Q. On China?
        The President. China, yes. See how generous I am to give you all
    these questions?
        Ms. Perino. You're ruining the lighting round aspect of it.
        The President. Okay, keep moving. [Laughter]
        Q. Actually, I would like to ask you what's your view on current
    relations between U.S. and China? Because 7 years ago, U.S. military
    plane was forced to land on Hainan Island.
        The President. That's right, yes.
        Q. And then, I would like to ask you, then, how you see the
    evolution of the China-U.S. relationship since then? And also, there is
    some concern in Japan that future of Asian--[inaudible]--U.S. and China
    will jointly manage the stability and prosperity. How do you see----
        The President. First of all, the cornerstone of U.S. policy is good,
    strong relations with Japan. So, as far as the Bush administration goes,
    that has been our policy, and we've acted on it. That's not to say we
    can't have good relations with China, nor Japan can have good
    relations--I mean, Japan should have good relations with China. And we
    expect Japan to work hard to have good relations with Japan, just like
    Japan ought to hope that we have good relations with China, which we do.
    Our relations are strong, and some say, have never been better. I'll let
    the experts judge that.
        And one reason why is, we've managed some difficult issues together.
    The Taiwan Straits issue is a difficult issue, and it looks like it's in
    a much better spot. I have worked hard to have a good personal
    relationship with Hu Jintao and Jiang Zemin, his predecessor, so I can
    speak frankly to them.
        And my big concerns about China are religious freedoms and
    individual rights and political freedoms. Every time I've met with the
    Chinese leader, which has been a lot, I've had a very frank and open
    dialog, and yet been able to maintain a good, cordial relationship so we
    can work through problems. One such problem is no nuclear weapons on the
    Korean Peninsula. We've got big economic relations with China, as does
    Japan.
        And so I don't view the world as zero-sum. In other words, if you
    got a good relationship, strong relationship, you can't have a good
    relationship with China; quite the contrary. In good foreign policy and
    good diplomacy, a good relations with one makes it easier to have a
    better relations with another country. And that's how we've conducted
    our policy.
        China is a very interesting issue for all of us. Right now they're
    dealing with trying to get their economy such that people in the rural
    parts of their country are able to benefit. And it's a challenge. And
    they're using a lot of raw materials--and one reason why it's important
    for Japan and the United States to help them develop the technologies
    that make them less dependent upon some of these raw materials--that
    have affected worldwide price of raw materials.
        And so it's a--it will be a very interesting issue for future
    Presidents, but we've been able to manage it very well.
        Kenji.

    2008 Presidential Elections

        Q. Thank you.
        The President. Yell your name. [Laughter]
        Q. I'd like to ask about the Presidential election.

    [[Page 958]]

        The President. Yes, I don't talk about it, Kenji. [Laughter] The
    American people are going to get to pick. I'm for McCain, if that's what
    you want to know. [Laughter]
        Q. ----Presidential election and U.S. foreign policy.
        The President. I like a persistent guy. Keep going.
        Q. Yes, thank you very much. [Laughter] So with one candidate who
    supports your foreign policy and another who sharply criticizes it, so
    how do you think this election will affect the rest of the world?
        The President. The rest of the world?
        Q. Yes.
        The President. You know, I'm--that's a good question. I'm for John
    McCain because I think he'll do a better job on foreign policy and
    domestic policy. But, Kenji, you know, I really am not going to spend a
    lot of time opining about the current election. The American people will
    filter it out. It's very early in the election cycle. This fall is
    really when the campaign begins in earnest--the debates, and people
    start to really focus on it. Right now it's a lot of the pundits and a
    lot of the pros and experts, some of whom are sitting right behind you,
    that are----

    North Korea

        Q. So do you believe that the next U.S. administration will continue
    your policy on North Korea?
        The President. I think whoever gets in the White House will take a
    look and say, gosh, it makes sense to have other people at the table
    other than the United States in order to effect good diplomacy.
    Diplomacy--in order for diplomacy to be effective, it has to be
    consequential. In other words, when five people say, here's the way
    forward, and if you choose not to do so there will be consequences--or
    if you choose to do so there will be consequences, it is much more
    effective than one nation sitting there saying, please change your
    habits.
        And so I--you know, I'm going to leave it to the candidates. They'll
    have to make up their own mind. But at least there's a multilateral
    forum in which to deal with this problem. Hopefully it's progressed a
    long way down the road by the time whoever comes in the Oval Office.
    We're pushing forward on an action for action, verifiable--and by the
    way, the next stage of this, just so everybody is comfortable, there
    will be a verifiable--a verification regime in place, so that--to answer
    your question, Michiro, it will be less speculation and more
    transparency.
        Thank you, sir.
        Oishi. Another economic question?

    Energy/Technology

        Q. You must be the most excellent expert on oil business.
        The President. Yes. [Laughter] Look where our price is. [Laughter]
        Q. Well, actually, I'm suffering high gas prices.
        The President. You are?
        Q. Every day.
        The President. Yes, you are.
        Q. So what can you do to curb energy inflation?
        The President. Yes, a couple of things: One is you either--just--
    this is pure economics. You'll understand this better than anybody here.
    You either increase the supply of something or decrease the demand of
    something in order to affect price--down. The habits of the United
    States consumer is beginning to change because people are now--they
    don't like $4 gasoline. I can understand why they don't like $4
    gasoline. People are now looking for smaller cars.
        That takes a while, however, to change. I fully understand that. But
    demand is beginning to shift in our country. And in order to affect
    worldwide demand, it seems like all of us--Japan, the United States, and
    others at the G-8--need to convince some of the people coming to the G-8
    to stop subsidizing their consumers or at least reduce the subsidies
    somewhat so that there is some effect on demand. Price cannot affect
    demand if people's habits are subsidized by state enterprise or the
    state.
        Secondly, the strategy on energy has got to be twofold, at least
    from the United States perspective: One, spend money and come up with
    technologies. That will mean we have to use less gasoline, therefore--in
    automobiles, for example--less gasoline and, therefore, take the demand
    off of crude oil.

    [[Page 959]]

        And I mentioned one such technology that I thought was interesting
    for me to mention it, recognizing the ascendancy of the Japanese
    technology in the battery market. I've spent a lot of time on this
    issue, and I think people would say that the Japanese autos and the
    Japanese R&D is very advanced on battery technologies, which is good.
    People say, well, doesn't that upset you? And my answer is, absolutely
    not. I'm interested in technology and technological breakthroughs, and
    I'm pleased that our friends--the investment that this government and
    the private sector has made is hopefully going to pay off soon. It's
    beneficial to the world.
        And the high price is going to spur a lot of investment. That's what
    I've explained to the main suppliers of crude oil. So when I went to
    Saudi Arabia, I said, this high price is hurting your consumers, your
    customers, and it's going to cause a lot of research and development to
    diversify away as fast as possible, which is what's happening.
        In the meantime, we better transition to this period. In other
    words, evidently our Congress must have thought that there will be
    instant technology on the market because they prevented us, since 2001,
    from exploring for known oil and gas reserves that we can do in
    environmentally friendly ways. And now all of a sudden the price got
    high enough where the American people are now beginning to hear that
    message, and I hope the Democrat leaders in Congress hear it, which is,
    you know, allow this new technology be deployed to find new reserves.
    And the sooner we do this the better. And it will certainly affect--at
    the very minimum, affect the psychology of the world, to see that new
    supplies of crude oil could be coming on the market in the United
    States.
        So that's our strategy, technologies and, in the meantime, find more
    oil here at home. And there's more oil to be found. And I can assure
    you, Japan wishes they had these reserves, you know, and you'd be
    finding them. And you wouldn't be hamstrung by politicians refusing to
    allow this to go forward.
        Michiro.

    Iraq/War on Terror

        Q. Last question on Iraq. What is your evaluation about where Iraq
    is now? Do you think now if the U.S. can afford to withdraw more troops
    from Iraq, or will you leave that decision to the next administration?
    What is your assessment on war on terror in general, during your two
    terms?
        The President. Well, thank you. Let me make sure I get--this is the
    old three-part question, and I'm about to be 62 years old, so--
    [laughter]. By the way, I will be celebrating my birthday on Japanese
    soil. That's interesting.
        Q. Congratulations.
        The President. Yes, come to the party. It's not going to be much of
    a party; it's only 62.
        Let's see, Iraq and troops. Okay. First of all, there was--the
    people have--okay, you got to have benchmarks. I think there was 15
    benchmarks--18 benchmarks. And one way to evaluate progress is to
    measure what's actually happened to what was expected. And the progress
    is undeniable. What happened was security was such that the politics and
    the economics could move forward. And for a period of time, that was not
    the case. That's why we sent more troops in. The combat brigades of the
    surge will finally come home. The last one will be home in July. So we
    are in a policy of return on success.
        I will listen to General Petraeus when he returns in September as to
    whether or not we can achieve our objective with fewer troops. That's up
    to our commanders. In other words, I'm not going to run a poll during
    the political season, or any time, to determine what's the best policy.
    The policy is determined by the considered judgment of our commanders.
    And my hope is the next President will have that same standard. That's
    going to be up to that person to make the right judgments.
        In terms of the war on terror, step one is to recognize we're at
    war. Some in our country don't believe we're at war. If you don't
    believe we're at war, that this is a simple law enforcement matter, then
    what you do is you wait until something happens and then react. You
    know, law enforcement is, there is an action, there's a crime, and then
    there--law enforcement acts.
        In war, what you do is you prevent the enemy from hitting in the
    first place. That's why Iraq and Afghanistan are very important

    [[Page 960]]

    theaters in the war on terror. People--some think these are separate
    wars. It's the same war against ideologues who murder the innocent to
    achieve their political objectives. These are just different fronts in
    the same war.
        And, you know, I am not surprised that a lethal enemy pushes back
    through the use of their indiscriminate violence to stop the advance of
    free societies, because this is an ideological war. When they see
    freedom on the march, it frightens them and it worries them to the point
    where they kill innocent people to try to shake the will of the people
    in that country and to shake the will of those trying to help them.
        And so, one, we've taken on the enemy; and two, we've had good
    success against Al Qaida. The first and second person is still alive,
    but the number three person in Al Qaida has had a dangerous existence--
    Khalid Sheikh Mohammed, al-Libi, a series of leaders. And we are
    pressuring them today, and we'll keep pressuring them. And my hope is,
    whoever the next President--understands this is a war, and that we can't
    relax. And that there's an enemy that wants to do free people harm, and
    that we have an obligation as free societies to keep the pressure, not
    only for our own security but for the security of others.
        This is back to this man's question down here about, why should we
    care about Afghanistan? The answer is, is because safe haven is a risk.
    But there's also another answer. That's one of the great lessons of our
    relationship. You know, I marvel at the fact, and I talk about it a lot
    to the American people, of the irony about Prime Minister Koizumi and my
    relationship. It's a great testament to our respective countries and the
    transformative power of liberty that my dad fought the Japanese, and his
    son sits at the peace table with the Japanese leaders in a spirit of
    respect and friendship and common values.
        Anyway, thank you. Enjoyed it.
        Q. Thank you very much.
        The President. Very good questions.
        Q. Thank you very much, sir.

    Note: The interview began at 12:46 p.m. in the Roosevelt Room at the
    White House. In his remarks, the President referred to Prime Minister
    Yasuo Fukuda and former Prime Ministers Yoshiro Mori, Junichiro Koizumi,
    and Shinzo Abe of Japan; Sakie Yokota, mother of Megumi Yokota, who was
    abducted by North Korean authorities; Chairman Kim Jong Il of North
    Korea; President Mahmud Ahmadi-nejad of Iran; Prime Minister Vladimir
    Putin of Russia, in his former capacity as President; Bobby Valentine,
    manager, Nippon Professional Baseball's Chiba Lotte Marines; Sadaharu
    Oh, manager, Nippon Professional Baseball's Fukuoka SoftBank Hawks;
    President Hu Jintao and former President Jiang Zemin of China;
    Republican Presidential candidate John McCain; Gen. David H. Petraeus,
    USA, commander, Multi-National Forces--Iraq; and Khalid Sheikh Mohammed
    and Abu Faraj al-Libi, former senior leaders of the Al Qaida terrorist
    organization currently in U.S. military custody. This interview was
    released by the Office of the Press Secretary on July 4. A tape was not
    available for verification of the contents of this interview.